Controversy in Midtown East: Residents Question Proposed Freedom Plaza Casino

The proposed Freedom Plaza development, a $11.1 billion project located on a 6.3-acre site from East 38th to 41st streets along First Avenue, has sparked a heated debate among residents and city officials.

At the heart of the controversy is the casino beneath the landscaped park, which has become the centerpiece and flashpoint of the debate. Kyle Athayde, a candidate for City Council in District 4, denounced the Freedom Plaza development during his testimony, accusing developers The Soloviev Group and Mohegan of sidelining residents and not engaging with the community about the proposal.

Athayde contended that the casino is a central part of the Freedom Plaza development, describing it as a "resort" dominated by two hotels and dismissing the park and other amenities as "Trojan horse tactics" that would leave little true public space. He also suggested the possibility of using eminent domain to take the land for the public good if necessary.

However, Raymond Pineault, CEO of Mohegan Gaming & Entertainment, defended the Freedom Plaza development, emphasizing that it would replace a long-vacant lot with a generational investment in housing and public space. He stated that the casino's underground design and entrance on the FDR Drive were intentional choices meant to avoid clogging residential streets.

The Freedom Plaza development includes two residential towers with 1,049 units, 513 of which are designated as affordable, two hotel towers, a museum dedicated to democracy, retail space, a daycare center, and nearly five acres of public parkland.

The developers have highlighted their economic promises, including 17,000 union jobs during construction and operation, nearly 40,000 jobs overall, and a Community Reinvestment Fund projected to direct $200 million over 20 years into local programs.

The Community Advisory Committee held its first public hearing for the Freedom Plaza development on August 28 at Scandinavia House on Park Ave. Athayde criticized the structure of the hearing, stating that a 4 p.m. weekday start time limited participation from working residents.

Not every voice from the area opposed the plan. Some argued that the casino and development would bring needed change to a troubled corridor along First Avenue. However, others warn that the traffic generated by the resort-scale project could choke critical corridors, particularly First Avenue during rush hour.

Some residents of Tudor City, an historic East Side apartment complex perched above the development site, are concerned about the casino's impact on emergency access to nearby hospitals. Critics of the Freedom Plaza development argue that it would worsen conditions in the area, particularly regarding limited parkland, overcrowded schools, and potential congestion on the FDR Drive.

Supporters of the Freedom Plaza development say it would bring badly needed housing and create thousands of union jobs. Reverend Dr. Suzan Johnson Cook, a former U.S. Ambassador-at-Large for International Religious Freedom, expressed support for the development, arguing against using the casino as an excuse to block opportunity for others.

The Freedom Plaza development is one of eight proposals competing for three downstate licenses from the state Gaming Facility Location Board. Athayde urged neighbors to keep organizing and advocated for alternatives to the casino, such as a world-class performing arts center with youth programming, more waterfront access, and expanded green space.